Frequently Asked Questions

Property Related Questions

Q: How much is your commission?
A:

  • Selling properties: 1%–2% commission + GST, depending on the property’s price, complexity, and difficulty.
  • Buying HDB flats: 1% commission + GST.
  • Buying new launch properties: No commission — the developer pays the agents.
  • Buying private properties: No commission in most cases. Typically, commissions are shared with the seller’s agent if there’s a co-broke. However, in some cases, if the seller’s agent does not share the commission, a 1% + GST commission will be payable by the buyer.
  • Renting properties: 1 month’s commission + GST for a 2-year lease, or 0.5 month’s commission + GST for a 1-year lease.

Q: I need some personal advice on my housing decision. I already have an existing agent, but I’m looking for an unbiased opinion. Can I seek your advice?

A: Absolutely, you can. Please note that a professional consultation fee will apply. Feel free to contact me for more details. Refer to Professional Advises

Q: How much are the legal fees for the sale and purchase of a property?
A:

  • HDB flats: If you have an existing HDB loan or are purchasing a fully paid HDB flat, you may engage HDB’s legal services. HDB legal fees are based on a percentage of the transacted price and are generally lower than private lawyer fees. You can check HDB’s fees here.
  • Bank loans: If you are selling or buying a property with a bank loan, you are required to engage a private lawyer. Typical fees range from S$2,500 – S$3,000, with higher fees for more expensive or complex cases (e.g., divorce settlements). It’s best to check directly with the lawyer for exact fees.

Q: Are agent commissions payable if I engage an agent to assist me in buying a property?
A:

  • Private property: Most buyer agents do not charge fees because they receive a commission from the seller’s agent. However, if the seller’s agent does not share the commission, the buyer will be responsible for paying 1% + GST.
  • New launch properties: Buyer agents receive their commission directly from the developer.
  • HDB flats: Commission is payable if the agent assists you with the purchase.

Q: What is the mortgage stamp fee?
A: The mortgage stamp fee is a small fee payable when securing a housing loan, capped at S$500. Read more here.

Q: How much is fire insurance, and is it compulsory?
A: Fire insurance premiums depend on the property value and coverage, typically ranging from a few dollars to over S$100 per month. Fire insurance is mandatory if you use a loan or CPF to purchase a property.

  • For HDB flats, you can read more here.
  • For private properties, consult insurance providers for a quotation.

Q: How much are the monthly Service & Conservancy Charges (S&CC) or property management fees?
A: S&CC covers the upkeep of HDB estates and varies by flat type:

  • 1-room flats: around S$20
  • Executive flats: over S$100
    You can refer to your local town council (e.g., Jurong Town Council, Tampines Town Council, Ang Mo Kio Town Council) for exact rates.

Q: How much is my property tax?
A: Property tax is levied on property ownership, not rental income. Rates depend on whether the property is owner-occupied (lower rates) or non-owner occupied/investment property (higher rates). Tax applies regardless of whether the property is occupied or vacant.

Q: Do I need to pay income tax on rental income?
A: Yes. Rental income is considered taxable and will be included in your annual income for IRAS. Read more here.

Q: Are there capital gains taxes on property?
A: Generally, no — capital gains from property sales are not taxable in Singapore. However, if you buy and sell properties with a profit-seeking motive (deemed trading), the gains may be taxable. IRAS considers factors such as:

  • Frequency of transactions
  • Reasons for acquiring and selling
  • Financial means to hold the property long-term
  • Holding period

Q: Is Goods and Services Tax (GST) payable?
A: GST applies to the sale and lease of properties in Singapore, except for residential properties, which are exempt.

 

Q: Does Singapore have strict laws on money laundering and terrorism financing?
A: Yes. Singapore is a member of the Financial Action Task Force (FATF), an international task force that combats money laundering and terrorism financing. FATF has issued 40 recommendations for countries to follow, and Singapore is obligated to implement them. These rules apply not only to the financial sector but also to other professional sectors, including real estate, public accountants, casinos, moneylenders, pawnbrokers, company service providers, developers, and lawyers.

Q: Does Singapore have a strict rule of law?
A: Absolutely. As a leading financial hub and one of Asia’s strongest economies, Singapore has a strict rule of law. Property transactions here are safe and secure, supported by a robust land registry that records all property dealings.

Q: Does investing in property in Singapore give me automatic visa or residency rights?
A: Not automatically. There used to be policies granting permanent residency (PR) to investors who met certain thresholds in property and business investments, but these have been abolished.
However, the Global Investor Programme (GIP) still allows eligible global investors with strong business records and a proven entrepreneurial track record to apply for PR, provided they intend to grow their business and investments in Singapore.

 

Q: Are there any foreign ownership restrictions?
A: Foreigners can purchase residential, commercial, and industrial properties in Singapore, but there are some restrictions:

Landed properties: Foreigners need approval from the Land Dealings Approval Unit (LDAU) under the Singapore Land Authority (SLA).

Shophouses with residential zoning: Not eligible for purchase.

HDB flats and Executive Condominiums: Reserved for Singapore citizens.

Sentosa landed properties: Foreigners are eligible to invest.

Please note that Additional Buyer’s Stamp Duty (ABSD) is payable for foreign buyers.

Q: Can foreigners of any nationality buy property in Singapore?
A: Yes, Singapore generally allows most nationalities to purchase property for personal stay or investment. However, certain nationalities may face temporary restrictions due to geo-political reasons. It’s always best to confirm with the relevant authorities and your embassy before committing.

Q: Is there a minimum purchase price for foreigners?
A: No. There is no minimum purchase price for foreigners buying property in Singapore.

Q: Can I buy property under a company name, such as a Virgin Islands-based company?
A: Yes, both local and overseas incorporated companies can purchase property in Singapore. For more complex transactions, it’s advisable to consult a local solicitor. Do note that ABSD is payable for property purchases made under a company name.

Q: What taxes do I need to pay as a foreigner purchasing property in Singapore?
A: Foreigners buying residential property in Singapore are required to pay Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD). For more detailed information, you can refer to IRAS.

 

Q: Are there taxes on rental income from my property?
A: Yes. Rental income includes all payments you receive when renting out your property — this covers rent, maintenance, furniture, and fittings. Rental income is subject to income tax, meaning any net profit after deducting allowable expenses is taxable.

There are two tax rates for foreigners:

Tax residents of Singapore: Net rental income is taxed at resident rates.

Non-residents: Net rental income is taxed at the prevailing non-resident rate of 22%.

For more detailed information, you can refer to IRAS.